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Carlisle (CSL) Declines 19.6% YTD: What's Hurting the Stock?
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Shares of Carlisle Companies Incorporated (CSL - Free Report) have lost 19.6% compared with the industry’s decline of 15.1% year to date. The decrease in share price primarily reflects the adverse impacts of the coronavirus pandemic on the company’s operational performance.
It currently carries a Zacks Rank #4 (Sell).
Factors Affecting the Company
Carlisle has been witnessing weak demand environment in most of its end-markets due to the coronavirus outbreak. Persistent lower demand from its mining, agriculture and construction end markets remains concerning for its Carlisle Brake & Friction segment. Also, softness in the global automotive end-market is likely to hurt the performance of its CFT segment in the near term. Further, owing to the crisis in commercial aerospace end-markets, Carlisle anticipates revenues from its commercial aerospace business to decline up to 50% in the second quarter.
Moreover, high debt level remains concerning for the company. Notably, in the last five years (2015-2019), its long-term debt increased 22.5% (CAGR). Notably, at the end of first-quarter 2020, the metric surged 61.9% to $2,577.3 million from the 2019-end level. Also, its total debt-to-total capital stood at 50.6% at the end of the first quarter compared with 37.6% in the previous quarter.
In addition, given its extensive geographic presence, the company is exposed to geopolitical risks and headwinds arising from unfavorable movements in foreign currencies. For instance, in the fourth quarter of 2019 and the first quarter of 2020, foreign exchange headwinds had an adverse impact of 0.2% and 0.3% on the company’s sales, respectively.
The Zacks Consensus Estimate for the company’s earnings is pegged at $5.87 for 2020 and $7.49 for 2021, marking declines of 30.9% and 22.1% from the respective 60-day-ago figures. Notably, there have been three downward revisions in estimates for both 2020 and 2021 in the past 60 days.
Intellicheck delivered a positive earnings surprise of 70.24%, on average, in the trailing four quarters.
Alcoa delivered a positive earnings surprise of 12.78%, on average, in the trailing four quarters.
Broadwind delivered a positive earnings surprise of 50.00%, on average, in the trailing four quarters.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Carlisle (CSL) Declines 19.6% YTD: What's Hurting the Stock?
Shares of Carlisle Companies Incorporated (CSL - Free Report) have lost 19.6% compared with the industry’s decline of 15.1% year to date. The decrease in share price primarily reflects the adverse impacts of the coronavirus pandemic on the company’s operational performance.
It currently carries a Zacks Rank #4 (Sell).
Factors Affecting the Company
Carlisle has been witnessing weak demand environment in most of its end-markets due to the coronavirus outbreak. Persistent lower demand from its mining, agriculture and construction end markets remains concerning for its Carlisle Brake & Friction segment. Also, softness in the global automotive end-market is likely to hurt the performance of its CFT segment in the near term. Further, owing to the crisis in commercial aerospace end-markets, Carlisle anticipates revenues from its commercial aerospace business to decline up to 50% in the second quarter.
Moreover, high debt level remains concerning for the company. Notably, in the last five years (2015-2019), its long-term debt increased 22.5% (CAGR). Notably, at the end of first-quarter 2020, the metric surged 61.9% to $2,577.3 million from the 2019-end level. Also, its total debt-to-total capital stood at 50.6% at the end of the first quarter compared with 37.6% in the previous quarter.
In addition, given its extensive geographic presence, the company is exposed to geopolitical risks and headwinds arising from unfavorable movements in foreign currencies. For instance, in the fourth quarter of 2019 and the first quarter of 2020, foreign exchange headwinds had an adverse impact of 0.2% and 0.3% on the company’s sales, respectively.
The Zacks Consensus Estimate for the company’s earnings is pegged at $5.87 for 2020 and $7.49 for 2021, marking declines of 30.9% and 22.1% from the respective 60-day-ago figures. Notably, there have been three downward revisions in estimates for both 2020 and 2021 in the past 60 days.
Stocks to Consider
Some better-ranked stocks are Intellicheck, Inc. (IDN - Free Report) , Alcoa Corporation (AA - Free Report) and Broadwind Energy Inc. (BWEN - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intellicheck delivered a positive earnings surprise of 70.24%, on average, in the trailing four quarters.
Alcoa delivered a positive earnings surprise of 12.78%, on average, in the trailing four quarters.
Broadwind delivered a positive earnings surprise of 50.00%, on average, in the trailing four quarters.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>